Until Lake County adopts an income tax, its property tax levy is frozen. That means it can't keep pace with inflation. No other county bears this burden; it is the Indiana General Assembly's way to trying to get Lake County officials to use the help already available before expecting a state handout.
Some Lake County officials have been adamant about their "no new taxes" pledge. Meanwhile, essential government services like public transportation and public safety aren't being adequately funded.
Hobart is the first city to officially ask for a Lake County income tax this year, but it isn't likely to be the last.
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The existing distribution formula for a county income tax has been contentious, but that need not be the case. All parties in the county must find a way to cooperate and agree on a formula that is fair and that helps all units of local government.
That's the answer that addresses fairness in terms of distribution of the funds collected and the need to continue provide essential services.
Adopting an income tax wouldn't sanction a spending spree. It would, however, take back income tax money left behind by Lake County residents who work in other Hoosier counties. Lake County would get that money instead. Enacting the income tax would thaw the frozen property tax levy. The income tax could fund property tax relief for homeowners.
It's time to discuss the income tax options again and devise a fair distribution formula. At the same time, discuss the proper uses for that money.
